Paper Info
Title
Mathematical analysis of financial decentralization and economic efficiency in both state-owned and private enterprises.
Abstract
The relationship between financial decentralization and economic efficiency has been a hot topic in the recent years. Modern enterprises, especially smart manufacturing enterprises, compared to traditional enterprises, have quantities of distinctive attributes. Given this situation, it is worthy of studying what role the financial decentralization plays in improving economic efficiency of both state-owned and private enterprises. In this paper, a mathematical model is built and utilized to explore the determinants of financial decentralization and the relationship of financial decentralization and economic efficiency. Specifically, the model is extended from the overlapping generations model (OLG), and the first order condition is taken into account to maximize corporate profits and personal utility and to deduce the channels through which financial decentralization affects economic efficiency. Results show that financial decentralization is related to the size of the population employed by the private economy and it contributes to enhancing economic efficiency by affecting the capital efficiency of private companies and the capital quota of private enterprises. This paper theoretically enriches the literature on the factors of economic efficiency and has significant implications in economic efficiency.
Year
DOI
Venue
2019
10.1002/cpe.4750
CONCURRENCY AND COMPUTATION-PRACTICE & EXPERIENCE
Keywords
Field
DocType
economic efficiency,financial decentralization,overlapping generations model,smartmanufacturing enterprises
Economic efficiency,Decentralization,Computer science,Overlapping generations model,Industrial organization,Distributed computing
Journal
Volume
Issue
ISSN
31.0
SP10.0
1532-0626
Citations 
PageRank 
References 
0
0.34
1
Authors
3
Name
Order
Citations
PageRank
Mei-Ling He100.34
Qijie Jiang2132.32
Zheng Hong3143.78